Following a report that European Oil storages have hit their limits and that Oil tankers were being hired in Europe to store excess Oil, we saw the Oil price retreat over the past week, causing CAD weakness. Trump’s historic Presidential win has only seen USD strength as his fiscal policy plans are likely to lead to more US Debt and Inflationary expectations have risen, meaning a rate hike is a greater chance.
USD/CAD is in uptrend and currently we can see a regular divergence playing out that could give a retracement in uptrend. POC 1.3427-1.3460 (L3, EMA89, WPP, 50.0, inner trend line) could spike the price to the upside targeting 1.3600. Additionally if we see a breakout above Inner trend line (ITL) or 4h close above it 1.3550 and 1.3600 are in play again. In the case of deeper retracement price may reach POC2 1.3375-90 (L4,trend line, 61.8) and spike towards 1.3465 in the same scenario.
USDCAD 4 Hour Chart